Scott Flanders, chief executive officer of eHealth stated, "We are
pleased with our third quarter execution and financial results. We
continued to grow our Medicare membership and commission revenue at a
strong pace. We also took steps to stabilize our Individual and Family
Plan business, which remained challenged by unfavorable market
conditions. During the quarter, we prepared for the annual enrollment
periods in the Medicare and Individual markets, which take place in the
fourth quarter with a significant overlap between the two. Our goal for
this important selling season is to further accelerate our enrollment
growth in the Medicare business and to maximize profitability in the
Individual and Family Plan business, while offering a wide range of
products designed to meet customers at their specific point of economic
and health insurance need."

GAAP — Third Quarter of 2017 Results

Revenue — Revenue for the third quarter of 2017 totaled $26.6
million, a 17% decrease compared to $32.1 million for the third quarter
of 2016. Commission revenue for the third quarter of 2017 totaled $24.7
million, a 18% decrease compared to $29.9 million for the third quarter
of 2016. Other revenue for the third quarter of 2017 was $2.0 million, a
9% decrease compared to $2.1 million for the third quarter of 2016.

Revenue from our Medicare segment was $10.7 million for the third
quarter of 2017, a 44% increase compared to $7.4 million for the third
quarter of 2016. Revenue from our Individual, Family and Small Business
segment was $15.9 million for the third quarter of 2017, a 35% decrease
compared to $24.7 million for the third quarter of 2016.

Loss from Operations — Loss from operations for the third quarter
of 2017 was $20.7 million compared to loss from operations of $6.9
million for the third quarter of 2016. Operating margin was (78)% for
the third quarter of 2017 compared to (22)% for the third quarter of
2016.

Pre-tax Loss — Pre-tax loss for the third quarter of 2017 was
$20.6 million compared to pre-tax loss of $6.9 million for the third
quarter of 2016.

Provision (Benefit) for Income Taxes — Provision for income taxes
for the third quarter of 2017 was $9 thousand compared to benefit for
income taxes of $1.2 million for the third quarter of 2016.

Net Loss — Net loss for the third quarter of 2017 was $20.6
million, or $1.11 loss per diluted share, compared to net loss of $5.7
million, or $0.31 loss per diluted share, for the third quarter of 2016.

Segment Profit (Loss)— Loss from our Medicare segment was
$18.1 million for the third quarter of 2017, a 21% increase compared to
loss of $14.9 million for the third quarter of 2016. Profit from our
Individual, Family and Small Business segment was $6.8 million for the
third quarter of 2017, a 61% decrease compared to $17.6 million for the
third quarter of 2016. Segment profit is calculated as revenue for the
applicable segment less Marketing and Advertising, Customer Care and
Enrollment, Technology and Content and General and Administrative
operating expenses, excluding stock-based compensation, depreciation and
amortization expense, restructuring benefit and amortization of
intangible assets, that are directly attributable to the applicable
segment and other indirect Marketing and Advertising, Customer Care and
Enrollment and Technology and Content operating expenses, excluding
stock-based compensation, depreciation and amortization expense and
amortization of intangible assets, allocated to the applicable segment
based on usage. Other indirect general and administrative operating
expenses are managed in a corporate shared services environment and,
since they are not the responsibility of segment operating management,
are not allocated to the operating segments and instead reported within
Corporate.

Non-GAAP — Third Quarter of 2017 Results

Non-GAAP Operating Loss & Non-GAAP Net Income (Loss) — Non-GAAP
operating loss for the third quarter of 2017 was $18.2 million compared
to non-GAAP operating loss of $5.4 million for the third quarter of
2016. Non-GAAP operating margin for the third quarter of 2017 was (68)%
compared to (17)% for the third quarter of 2016. Non-GAAP net loss for
the third quarter of 2017 was $18.1 million, or $0.98 loss per diluted
share, compared to non-GAAP net loss of $4.3 million, or $0.23 loss per
diluted share, for the third quarter of 2016.

Non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per
diluted share for the third quarter of 2017 exclude $2.2 million of
stock-based compensation expense and $0.3 million of amortization of
intangible assets. Non-GAAP operating loss, non-GAAP net loss and
non-GAAP net loss per diluted share for the third quarter of 2016
exclude $1.3 million of stock-based compensation expense, $0.1 million
restructuring benefit and $0.3 million of amortization of intangible
assets.

Adjusted EBITDA — AdjustedEBITDA for the third quarter of
2017 was $(17.5) million compared to $(4.6) million for the third
quarter of 2016. Adjusted EBITDA is calculated by adding stock-based
compensation, depreciation and amortization expense, restructuring
benefit, amortization of intangible assets, other income (expense), net
and provision (benefit) for income taxes to GAAP net income.

Membership & Submitted Applications

Membership — Total estimated membership as of September 30, 2017
was 874,100 members, a 12% decrease compared to 988,500 we reported as
of September 30, 2016. Estimated Medicare membership as of September 30,
2017 was 314,500, a 30% increase compared to 242,500 we reported as of
September 30, 2016. Estimated individual and family plan membership as
of September 30, 2017 was 227,300 members, a 42% decrease compared to
390,400 we reported as of September 30, 2016.

Submitted Applications —Submitted applications for all Medicare
products, which includes Medicare Advantage, Medicare Supplement and
Prescription Drug Plans were 28,900 applications in third quarter of
2017, a 20% increase compared to 24,100 applications in the third
quarter of 2016. Submitted applications for individual and family plan
products decreased (43)% in the third quarter of 2017 to 5,100
applications covering 7,800 individuals compared to 8,900 applications
covering 13,500 individuals in the third quarter of 2016.

Cash — Third Quarter of 2017

Cash Flows — Net cash used in operating activities was $12.9
million for the third quarter of 2017 compared to net cash provided by
operating activities of $1.5 million for the third quarter of 2016.

GAAP — Year-to-Date Results

Revenue — Revenue for the nine months ended September 30, 2017
totaled $133.5 million, a 7% decrease compared to $143.2 million for the
nine months ended September 30, 2016. Commission revenue for the nine
months ended September 30, 2017 totaled $126.6 million, a 5% decrease
compared to $134.0 million for the nine months ended September 30, 2016.
Other revenue for the nine months ended September 30, 2017 was $6.9
million, a 26% decrease compared to $9.2 million for the nine months
ended September 30, 2016.

Revenue from our Medicare segment was $79.7 million for the nine months
ended September 30, 2017, a 32% increase compared to $60.5 million for
the nine months ended September 30, 2016. Revenue from our Individual,
Family and Small Business segment was $53.8 million for the nine months
ended September 30, 2017, a 35% decrease compared to $82.7 million for
the nine months ended September 30, 2016.

Income (Loss) from Operations — Loss from operations for the nine
months ended September 30, 2017 was $6.1 million compared to income from
operations of $11.0 million for the nine months ended September 30,
2016. Operating margin was (5)% for the nine months ended September 30,
2017 compared to 8% for the nine months ended September 30, 2016.

Pre-tax Income (Loss) — Pre-tax loss for the nine months ended
September 30, 2017 was $5.9 million compared to pre-tax income of $10.9
million for the nine months ended September 30, 2016.

Provision (Benefit) for Income Taxes — Benefit for income taxes
for the nine months ended September 30, 2017 was $1.4 million compared
to $0.9 million for the nine months ended September 30, 2016.

Net Income (Loss) — Net loss for the nine months ended
September 30, 2017 was $4.5 million, or $0.24 loss per diluted share,
compared to net income of $11.8 million, or $0.65 per diluted share, for
the nine months ended September 30, 2016.

Segment Profit (Loss)— Loss from our Medicare segment was
$2.5 million for the nine months ended September 30, 2017, a 78%
decrease compared to $11.1 million loss from Medicare segment for the
nine months ended September 30, 2016. Profit from our Individual, Family
and Small Business segment was $26.3 million for the nine months ended
September 30, 2017, a 51% decrease compared to $53.7 million for the
nine months ended September 30, 2016. Segment profit is calculated as
revenue for the applicable segment less Marketing and Advertising,
Customer Care and Enrollment, Technology and Content and General and
Administrative operating expenses, excluding stock-based compensation,
depreciation and amortization expense, restructuring benefit and
amortization of intangible assets, that are directly attributable to the
applicable segment and other indirect Marketing and Advertising,
Customer Care and Enrollment and Technology and Content operating
expenses, excluding stock-based compensation, depreciation and
amortization expense and amortization of intangible assets, allocated to
the applicable segment based on usage. Other indirect general and
administrative operating expenses are managed in a corporate shared
services environment and, since they are not the responsibility of
segment operating management, are not allocated to the operating
segments and instead reported within Corporate.

Non-GAAP — Year-to-Date Results

Non-GAAP Operating Income & Non-GAAP Net Income — Non-GAAP
operating income for the nine months ended September 30, 2017 was $1.6
million compared to $16.8 million for the nine months ended
September 30, 2016. Non-GAAP operating margin for the nine months ended
September 30, 2017 was 1% compared to 12% for the nine months ended
September 30, 2016. Non-GAAP net income for the nine months ended
September 30, 2017 was $3.3 million, or $0.18 per diluted share,
compared to $17.7 million, or $0.96 per diluted share, for the nine
months ended September 30, 2016.

Non-GAAP operating income, non-GAAP net income and non-GAAP net income
per diluted share for the nine months ended September 30, 2017 exclude
$6.9 million of stock-based compensation expense and $0.8 million of
amortization of intangible assets. Non-GAAP operating income, non-GAAP
net income and non-GAAP net income per diluted share for the nine months
ended September 30, 2016 exclude $5.4 million of stock-based
compensation expense, $0.3 million restructuring benefit and $0.8
million of amortization of intangible assets.

Adjusted EBITDA — AdjustedEBITDA for the nine months
ended September 30, 2017 was $3.8 million compared to $19.5 million for
the nine months ended September 30, 2016. Adjusted EBITDA is calculated
by adding stock-based compensation, depreciation and amortization
expense, restructuring benefit, amortization of intangible assets, other
income (expense), net and provision (benefit) for income taxes to GAAP
net income.

Membership & Submitted Applications

Submitted Applications —Submitted applications for all Medicare
products, which includes Medicare Advantage, Medicare Supplement and
Prescription Drug Plans was 91,400 applications in the nine months ended
September 30, 2017, a 4% increase compared to 87,700 applications in the
nine months ended September 30, 2016. Submitted applications for
individual and family plan products decreased 65% in the nine months
ended September 30, 2017 to 32,500 applications covering 46,800
individuals compared to 93,000 applications covering 125,200 individuals
in the nine months ended September 30, 2016.

2017 Guidance

eHealth is reaffirming guidance for the full year ending December 31,
2017 based on information available as of October 26, 2017. These
expectations are forward-looking statements and eHealth assumes no
obligation to update these statements. Results may be materially
different and are affected by the risk factors and uncertainties
identified in this release and in eHealth’s annual and quarterly filings
with the Securities and Exchange Commission.

Total revenue is expected to be in the range of $165 million to $175
million. Revenue from the Medicare segment is expected to be in the
range of $96.5 million to $101.5 million. Revenue from the Individual,
Family and Small Business segment is expected to be in the range of
$68.5 million to $73.5 million.

GAAP net loss is expected to be in the range of $(27.8) million to
$(29.8) million.

Adjusted EBITDA(a) is expected to be in the range of
$(14.1) million to $(16.1) million.

In millions

GAAP net loss

$

(27.8

)

$

(29.8

)

Stock-based compensation expense

10.6

10.6

Depreciation and amortization

3.4

3.4

Amortization of intangible assets

1.0

1.0

Other income (expense), net

(0.1

)

(0.1

)

Benefit for income taxes

(1.2

)

(1.2

)

Adjusted EBITDA(a)

$

(14.1

)

$

(16.1

)

Medicare segment loss(b) is expected to be in the range of
$(11.5) million to $(12.5) million. Individual, Family and Small
Business segment profit(b) is expected to be in the range
of $23.5 million to $24.5 million. Corporate(c) shared
service expenses, excluding stock-based compensation and depreciation
and amortization expense, is expected to be approximately $26.8
million.

GAAP net loss per share is expected to be in the range of $(1.49) to
$(1.59) per share.

Non-GAAP net loss per share(d) is expected to be in the
range of $(0.86) to $(0.96) per share.

GAAP net loss per diluted share

$

(1.49

)

$

(1.59

)

Stock-based compensation expense

0.57

0.57

Amortization of intangible assets

0.06

0.06

Non-GAAP net loss per diluted share(d)

$

(0.86

)

$

(0.96

)

(a) Adjusted EBITDA is calculated by adding stock-based compensation,
depreciation and amortization expense, amortization of intangible
assets, other income (expense) and provision (benefit) for income taxes
to GAAP net income (loss).

(b) Segment profit (loss) is calculated as revenue for the applicable
segment less Marketing and Advertising, Customer Care and Enrollment,
Technology and Content and General and Administrative operating
expenses, excluding stock-based compensation, depreciation and
amortization expense and amortization of intangible assets, that are
directly attributable to the applicable segment and other indirect
Marketing and Advertising, Customer Care and Enrollment and Technology
and Content operating expenses, excluding stock-based compensation,
depreciation and amortization expense and amortization of intangible
assets, allocated to the applicable segment based on usage.

(c) Corporate consists of other indirect General and Administrative
operating expenses, excluding stock-based compensation and depreciation
and amortization expense, which are managed in a corporate shared
services environment and, since they are not the responsibility of
segment operating management, are not allocated to the reportable
segments.

A Webcast and conference call will be held today, Thursday, October 26,
2017 at 5:00 p.m. Eastern / 2:00 p.m. Pacific Time. The Webcast will be
available live on the Investor Relations section on eHealth’s website at http://ir.ehealthinsurance.com.
Individuals interested in listening to the conference call may do so by
dialing (877) 930-8066 for domestic callers and (253) 336-8042 for
international callers. The participant passcode is 1566865. A telephone
replay will be available two hours following the conclusion of the call
for a period of seven days and can be accessed by dialing (855)859-2056
for domestic callers and (404) 537-3406 for international callers. The
call ID for the replay is 1566865. The live and archived webcast of the
call will also be available on eHealth's website at http://www.ehealthinsurance.com
under the Investor Relations section.

About eHealth, Inc.

eHealth, Inc. (NASDAQ: EHTH) operates eHealth.com,
a leading private online health insurance exchange where individuals,
families and small businesses can compare health insurance products from
leading insurers side by side and purchase and enroll in coverage
online. eHealth offers thousands of individual, family and small
business health plans underwritten by many of the nation's leading
health insurance companies. eHealth (through its subsidiaries) is
licensed to sell health insurance in all 50 states and the District of
Columbia. eHealth also offers educational resources and powerful online
and pharmacy-based tools to help Medicare beneficiaries navigate
Medicare health insurance options, choose the right plan and enroll in
select plans online through PlanPrescriber.com (www.PlanPrescriber.com),
eHealthMedicare.com (www.eHealthMedicare.com)
and Medicare.com (www.Medicare.com).

Forward-Looking Statements

This press release contains statements that are forward-looking
statements as defined within the Private Securities Litigation Reform
Act of 1995. These include statement regarding our goals to accelerate
enrollment growth in the Medicare business and to maximize profitability
in the Individual and Family plan business, our plans to offer a wide
range of products to meet customers' needs, our estimates regarding
total memberships, Medicare memberships and Individual, Family and Small
Business memberships and our guidance for the full year ending December
31, 2017, including our guidance for total revenue, revenue from the
Medicare segment, revenue from the Individual, Family and Small Business
segment, Adjusted EBITDA, loss from the Medicare segment, profit from
the Individual, Family and Small Business segment, Corporate shared
service expense, GAAP net loss, GAAP net loss per share and Non-GAAP net
loss per share. These forward-looking statements are inherently subject
to various risks and uncertainties that could cause actual results to
differ materially from the statements made, including risks associated
with the impact of healthcare reform; our ability to retain existing
members and enroll a large number of new members during the annual
healthcare reform open enrollment period and Medicare annual enrollment
period; the impact of annual enrollment period for the purchase of
individual and family health insurance and its timing on our recognition
of revenue; our ability to sell qualified health insurance plans to
subsidy-eligible individuals and to enroll subsidy eligible individuals
through government-run health insurance exchanges without users leaving
our website for the upcoming open enrollment period; our health
insurance benefit packages' ability to meet individual customer's
specific health insurance and price needs; our ability to comply with
CMS guidance and impact on conversion rates as a result of the federal
exchange changes to enrollment; competition, including competition from
government-run health insurance exchanges; seasonality of our business
and the fluctuation of our operating results; our ability to retain
existing members and limit member turnover; changes in consumer
behaviors and their selection of individual and family health insurance
products, including the selection of products for which we receive lower
commissions; a reduction of product offerings among carriers and the
resulting impact on our commission revenue; carriers exiting the market
of selling individual and family health insurance and the resulting
impact on our supply and commission revenue; our ability to execute on
our growth strategy in the Medicare and small business health insurance
markets; the impact of increased health insurance costs on demand; our
ability to timely receive and accurately predict the amount of
commission payments from health insurance carriers; timing of commission
payments from health insurance carriers; medical loss ratio
requirements; delays in our receipt of items required to recognize
Medicare revenue; changes in member conversion rates; our ability to
accurately estimate membership; our relationships with health insurance
carriers; customer concentration and consolidation of the health
insurance industry; our success in marketing and selling health
insurance plans and our unit cost of acquisition; our ability to hire,
train and retain licensed health insurance agents and other employees;
the need for health insurance carrier and regulatory approvals in
connection with the marketing of Medicare-related insurance products;
costs of acquiring new members; scalability of the Medicare business;
lack of membership growth and retention rates; consumers satisfaction of
our service; changes in competitive landscape; our ability to attract
and to convert online visitors into paying members; changes in products
offered on our ecommerce platform; changes and reductions in commission
rates; maintaining and enhancing our brand identity; our ability to
derive desired benefits from investments in our business, including
membership growth initiatives; dependence on acceptance of the Internet
as a marketplace for the purchase and sale of health insurance; reliance
on marketing partners; the impact of our direct-to-consumer television
marketing efforts; timing of receipt and accuracy of commission reports;
payment practices of health insurance carriers; dependence on our
operations in China; changes in laws and regulations, including in
connection with healthcare reform and/or with respect to the marketing
and sale of Medicare plans; compliance with insurance and other laws and
regulations; exposure to security risks; and the performance,
reliability and availability of our ecommerce platform and underlying
network infrastructure. Other factors that could cause operating,
financial and other results to differ are described in eHealth’s most
recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K filed
with the Securities and Exchange Commission and available on the
investor relations page of eHealth’s website at http://www.ehealthinsurance.com
and on the Securities and Exchange Commission’s website at www.sec.gov.
eHealth does not undertake any obligation to update any forward-looking
statement to conform the statement to actual results or changes in
expectations.

Non-GAAP Financial Information

This press release includes financial measures that are not in
accordance with generally accepted accounting principles in the United
States (GAAP). To supplement eHealth’s condensed consolidated financial
statements presented in accordance with GAAP, eHealth presents investors
with certain non-GAAP financial measures, including non-GAAP operating
income (loss); non-GAAP operating margins; adjusted earnings before
interest, taxes, depreciation and amortization (Adjusted EBITDA);
non-GAAP net income (loss) and non-GAAP net income (loss) per diluted
share.

Non-GAAP operating income (loss) consists of GAAP operating income
(loss) excluding the following items:

Non-GAAP operating margins are calculated by dividing non-GAAP
operating income (loss) by GAAP total revenue.

Adjusted EBITDA is calculated by adding stock-based compensation,
depreciation and amortization expense, restructuring benefit,
amortization of intangible assets, other income (expense) and
provision (benefit) for income taxes to GAAP net income (loss).

eHealth believes that the presentation of these non-GAAP financial
measures provide important supplemental information to management and
investors regarding financial and business trends relating to eHealth’s
financial condition and results of operations. Management believes that
the use of these non-GAAP financial measures provides consistency and
comparability with eHealth’s past financial reports. Management also
believes that the items described above provides an additional measure
of eHealth’s operating results and facilitates comparisons of eHealth’s
core operating performance against prior periods and business model
objectives. This information is provided to investors in order to
facilitate additional analyses of past, present and future operating
performance and as a supplemental means to evaluate eHealth’s ongoing
operations. eHealth believes that these non-GAAP financial measures are
useful to investors in their assessment of eHealth’s operating
performance.

Non-GAAP operating income (loss), non-GAAP operating margins, Adjusted
EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per
diluted share are not calculated in accordance with GAAP, and should be
considered supplemental to, and not as a substitute for, or superior to,
financial measures calculated in accordance with GAAP. Non-GAAP
financial measures used in this press release have limitations in that
they do not reflect all of the revenue and costs associated with the
operations of eHealth’s business and do not reflect income tax as
determined in accordance with GAAP. As a result, you should not consider
these measures in isolation or as a substitute for analysis of eHealth’s
results as reported under GAAP. eHealth expects to continue to incur the
stock-based compensation costs and purchased intangible asset
amortization costs described above, and exclusion of these costs, and
their related income tax benefits, from non-GAAP financial measures
should not be construed as an inference that these costs are unusual or
infrequent. eHealth compensates for these limitations by prominently
disclosing GAAP operating income (loss), GAAP operating margins, GAAP
net income (loss) and GAAP net income (loss) per diluted share and
providing investors with reconciliations from eHealth’s GAAP operating
results to the non-GAAP financial measures for the relevant periods.

The accompanying tables provide more details on the GAAP financial
measures that are most directly comparable to the non-GAAP financial
measures described above and the related reconciliations between these
financial measures.

EHEALTH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

December 31,2016

September 30,2017

(1)

Assets

Current assets:

Cash and cash equivalents

$

61,781

$

51,377

Accounts receivable

9,213

13,020

Prepaid expenses and other current assets

5,148

7,644

Total current assets

76,142

72,041

Property and equipment, net

5,608

4,961

Other assets

4,473

5,265

Intangible assets, net

8,580

7,800

Goodwill

14,096

14,096

Total assets

$

108,899

$

104,163

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

5,112

$

3,560

Accrued compensation and benefits

10,920

10,879

Accrued marketing expenses

7,158

2,213

Deferred revenue

959

3,071

Other current liabilities

3,775

3,946

Total current liabilities

27,924

23,669

Non-current liabilities

3,374

1,313

Stockholders’ equity:

Common stock

29

30

Additional paid-in capital

272,778

278,803

Treasury stock, at cost

(199,998

)

(199,998

)

Retained earnings

4,616

161

Accumulated other comprehensive income

176

185

Total stockholders’ equity

77,601

79,181

Total liabilities and stockholders’ equity

$

108,899

$

104,163

(1) The condensed consolidated balance sheet at December 31, 2016 has
been derived from the audited consolidated financial statements at that
date.

We evaluate our business performance and manage our operations as
two distinct reporting segments - Medicare and Individual, Family
and Small Business.

(1)

The Medicare segment consists primarily of amounts earned from our
sale of Medicare-related health insurance plans, including Medicare
Advantage, Medicare Supplement and Medicare Part D prescription drug
plans, and to a lesser extent, ancillary products sold to our
Medicare-eligible customers, including but not limited to, dental,
vision, life, short term disability and long term disability
insurance, our advertising program that allows Medicare-related
carriers to purchase advertising on a separate website developed,
hosted and maintained by us and our delivery and sale to third
parties of Medicare-related health insurance leads generated by our
ecommerce platforms and our marketing activities.

(2)

The Individual, Family and Small Business segment consists primarily
of amounts earned from our sale of individual and family and small
business health insurance plans and ancillary products sold to our
non-Medicare-eligible customers, including but not limited to,
dental, vision, life, short term disability and long term disability
insurance. To a lesser extent, the Individual, Family and Small
Business segment consists of amounts earned from our online
sponsorship program that allows carriers to purchase advertising
space in specific markets in a sponsorship area on our website, our
licensing to third parties the use of our health insurance ecommerce
technology and our delivery and sale to third parties of individual
and family health insurance leads generated by our ecommerce
platforms and our marketing activities.

(3)

Segment profit (loss) is calculated as revenue for the applicable
segment less Marketing and Advertising, Customer Care and
Enrollment, Technology and Content and General and Administrative
operating expenses, excluding stock-based compensation, depreciation
and amortization expense and amortization of intangible assets, that
are directly attributable to the applicable segment and other
indirect Marketing and Advertising, Customer Care and Enrollment and
Technology and Content operating expenses, excluding stock-based
compensation, depreciation and amortization expense and amortization
of intangible assets, allocated to the applicable segment based on
usage.

(4)

Corporate consists of other indirect General and Administrative
operating expenses, excluding stock-based compensation, depreciation
and amortization expense, which are managed in a corporate shared
services environment and, since they are not the responsibility of
segment operating management, are not allocated to the reportable
segments.

EHEALTH, INC.

SUMMARY OF SELECTED METRICS

(Unaudited)

Key Metrics:

Three Months Ended September 30, 2017

Nine Months EndedSeptember 30, 2017

2016

2017

PercentChange

2016

2017

PercentChange

Submitted applications:

Medicare submitted applications (1)

24,100

28,900

20

%

87,700

91,400

4

%

IFP submitted applications (2)

8,900

5,100

(43

)%

93,000

32,500

(65

)%

Other submitted applications (3)

56,400

56,000

(1

)%

214,400

172,800

(19

)%

Total submitted applications (4)

89,400

90,000

1

%

395,100

296,700

(25

)%

Medicare Advantage submitted applications (5)

17,100

21,000

23

%

65,200

65,900

1

%

As of September 30,

2016

2017

PercentChange

Estimated membership:

Medicare products (6)

242,500

314,500

30

%

IFP products (7)

390,400

227,300

(42

)%

Other products (8)

355,600

332,300

(7

)%

Total estimated membership (9)

988,500

874,100

(12

)%

Notes:

(1)

Medicare-related health insurance applications submitted on our
website or through our customer care center during the period,
including Medicare Advantage, Medicare Part D prescription drug and
Medicare Supplement plans. Applications are counted as submitted
when the applicant completes the application and either clicks the
submit button on our website or provides verbal authorization to
submit the application. The applicant may have additional actions to
take before the application will be reviewed by the insurance
carrier, such as providing additional information. In addition, an
applicant may submit more than one application.

(2)

Major medical Individual and Family plan ("IFP") health insurance
applications submitted on our website during the period.
Applications are counted as submitted when the applicant completes
the application, clicks the submit button on our website and submits
the application to us. The applicant may have additional actions to
take before the application will be reviewed by the insurance
carrier, such as providing additional information. In addition, an
applicant may submit more than one application. We define our IFP
offerings as major medical individual and family health insurance
plans, which does not include Medicare-related, small business or
ancillary plans (primarily consisting of short-term, dental, life,
vision, and accident insurance plans).

(3)

Applications for health insurance plans other than Medicare and IFP
submitted on our website during the period. Applications for
ancillary plans are counted as submitted when the applicant
completes the application, clicks the submit button on our website
and submits the application to us. Applications for small business
plans are counted as submitted when the applicant completes the
application, the employees complete their applications, the
applicant submits the application to us and we submit the
application to the carrier. The applicant may have additional
actions to take before the application will be reviewed by the
insurance carrier, such as providing additional information. In
addition, an applicant may submit more than one application.

(4)

Applications for all health insurance plans submitted on our website
or through our customer care center during the period. See notes
(1), (2) and (3) above for more information as to what constitutes a
submitted application.

(5)

Medicare Advantage plan health insurance applications submitted on
our website or through our customer care center during the period.
Applications are counted as submitted when the applicant completes
the application and either clicks the submit button on our website
or provides verbal authorization to submit the application. The
applicant may have additional actions to take before the
application will be reviewed by the insurance carrier, such as
providing additional information. In addition, an applicant may
submit more than one application. Medicare Advantage submitted
applications are included in Medicare submitted applications - See
note (1) above for more detail.

(6)

Estimated number of members active on Medicare-related health
insurance as of the date indicated. See the note below for
additional information regarding our calculation of Medicare
estimated membership.

(7)

Estimated number of members active on IFP health insurance plans as
of the date indicated. See the note below for additional information
regarding our calculation of IFP estimated membership.

(8)

Estimated number of members active on insurance plans other than
Medicare-related health insurance and IFP health insurance plans as
of the date indicated. See the note below for additional information
regarding our calculation of other estimated membership.

(9)

Estimated number of members active on all insurance plans as of the
date indicated. See the note below for additional information
regarding our calculation of total estimated membership.

Note:

Health insurance carriers bill and collect insurance premiums paid by
our members. Health insurance carriers do not report to us the number of
members that we have as of a given date. The majority of our members who
terminate their policies do so by discontinuing their premium payments
to the carrier and do not inform us of the cancellation. Also, some of
members pay their premiums less frequently than monthly. Given the
number of months required to observe non-payment of commissions in order
to confirm cancellations, we estimate the number of members who are
active on insurance policies as of a specified date. We estimate the
number of continuing members on all policies as of a specific date as
follows:

For Medicare-related health insurance plans, we take the number of
members for whom we have received or applied a commission payment
during the month of estimation.

For IFP health insurance plans, we take the sum of (i) the number of
IFP members for whom we have received or applied a commission payment
for a month that is up to six months prior to the date of estimation
after reducing that number using historical experience for assumed
member cancellations over the period being estimated; and (ii) the
number of approved members over that period (after reducing that
number by the percentage of members who do not accept their approved
policy from the same month of the previous year for estimated member
cancellations through the date of the estimate). To the extent we
determine we have received substantially all of the commission
payments related to a given month during the period being estimated,
we will take the number of members for whom we have received or
applied a commission payment during the month of estimation.

For ancillary health insurance plans (such as short-term, dental,
vision, accident and student), we take the sum of (i) the number of
members for whom we have received or applied a commission payment for
a month that is up to three months prior to the date of estimation
(after reducing that number using historical experience for assumed
member cancellations over the period being estimated); and (ii) the
number of approved members over that period (after reducing that
number using historical experience for an assumed number of members
who do not accept their approved policy from same month of the
previous year and for estimated member cancellations through the date
of the estimate). To the extent we determine we have received
substantially all of the commission payments related to a given month
during the period being estimated, we will take the number of members
for whom we have received or applied a commission payment during the
month of estimation. The one to three-month period varies by insurance
product and is largely dependent upon the timeliness of commission
payment and related reporting from the related carriers. For small
business health insurance plans, we estimate the number of members
using the number of initial members at the time the group is approved,
and we update this number for changes in membership if such changes
are reported to us by the group or carrier in the period it is
reported. However, groups generally notify the carrier directly of
policy cancellations and increases or decreases in group size without
informing us. Health insurance carriers often do not communicate
policy cancellation information or group size changes to us. We often
are made aware of policy cancellations and group size changes at the
time of annual renewal and update our membership statistics
accordingly in the period they are reported.

A member who purchases and is active on multiple standalone insurance
plans will be counted as a member more than once. For example, a member
who is active on both an individual and family health insurance plan and
a standalone dental plan will be counted as two continuing members.

After we have estimated membership for a period, we may receive
information from health insurance carriers that would have impacted the
estimate if we had received the information prior to the date of
estimation. We may receive commission payments or other information that
indicates that a member who was not included in our estimates for a
prior period was in fact an active member at that time, or that a member
who was included in our estimates was in fact not an active member of
ours. For instance, we reconcile information carriers provide to us and
may determine that we were not historically paid commissions owed to us,
which would cause us to have underestimated membership. Conversely,
carriers may require us to return commission payments paid in a prior
period due to policy cancellations for members we previously estimated
as being active. We do not update our estimated membership numbers
reported in previous periods. Instead, we reflect updated information
regarding our historical membership in the membership estimate for the
current period. As a result of the delay in our receipt of information
from insurance carriers, actual trends in our membership are most
discernible over periods longer than from one quarter to the next. In
addition, and as a result of the delay we experience in receiving
information about our membership, it is difficult for us to determine
with any certainty the impact of current conditions on our membership
retention. Health care reform and its impacts as well as other factors
could cause the assumptions and estimates that we make in connection
with estimating our membership to be inaccurate, which would cause our
membership estimates to be inaccurate.